Health & Wellness Corporation has had 7,500 shares of $3.00 cumulative preferred shares outstanding as well as 28,000 common shares issued at $10 outstanding since it was incorporated. During the first, second, and third years of operations, $15,000, $18,000, and $50,000 in dividends, respectively, were paid. The dividends paid to the common shareholders of Health & Wellness Corporation in year three amounted to:

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In year three, the preferred shareholders must first receive their cumulative dividends for all three years before common shareholders receive any dividends. Preferred dividends are $3.00 per share for 7,500 shares, totaling $22,500 annually. Over three years, this amounts to $67,500. In the first two years, $33,000 was paid, leaving $34,500 due to preferred shareholders in year three. With $50,000 available in year three, $34,500 goes to preferred shareholders, leaving $15,500 for common shareholders.

Health & Wellness Corporation Has Had 7,500 Shares of $3